The GATS and regional approaches to services trade and investment liberalisation

Ayoki, Milton (2015): The GATS and regional approaches to services trade and investment liberalisation.

Abstract

This paper examines the approaches to liberalization of trade in services adopted within existing regional agreements (RTAs) as compared to prevailing GATS’ commitments. Using examples from Africa, Latin America, and Asia (of total of over 30 RTAs), it explores how the difficult issues associated with services trade and investment liberalisation are tackled in the RTA-type arrangement and how much further access is granted under RTAs. The results show that in all market access areas, RTAs generally offer superior value added over GATS. In nearly all the modes of supply and sectors, RTA commitments tend to go significantly beyond GATS offers in terms of improved and new bindings (although improvements in mode 4 remains modest in scope across all RTAs). Most RTAs, however, are at the same pace with GATS in securing the rule-making interface between domestic regulation and trade in services and with regard to special treatment for less developed members. RTA commitments tend to lag behind GATS on safeguard mechanism, and disciplines on subsidies.

• Item Type: MPRA Paper
• Language: English
• Keywords: GATS, regional approaches, RTAs, trade in services, trade and investment liberalisation, developing countries, Africa
• Subjects: F - International Economics > F1 - Trade > F13 - Trade Policy ; International Trade Organizations; F - International Economics > F1 - Trade > F15 - Economic Integration

References

Cattaneo, Olivier., Michael Engman , Sebastián Sáez, and Robert M. Stern. (eds). 2006. International trade in services: new trends and opportunities for developing countries, Washington, D.C., World Bank.

Crawford, Jo-Ann and Roberto Fiorentino, V. 2005. “The changing landscape of regional trade agreements”, WTO Discussion Paper No. 8.

East African Community. 2009. “The East African Community Common Market schedule of commitments on the progressive liberalisation of services, Annex V”, Arusha: EAC Secretariat, November 2009.

East African Community. 2009. Protocol on the Establishment of the East African Community Common Market, Arusha: East African Community Secretariat, 20 November 2009.

Eschenbach, Felix and Bernard Hoekman. 2006. “Services policy reform and economic growth in transition economies”, Review of World Economics, Vol. 142 (4), 476 – 764, The Kiel Institute.

Kategekwa, Joy. 2014. Opening markets for foreign skills: how can the WTO help? Lessons from the EU and Uganda’s regional services deals, Geneva: Springer.

Roy, Martin., Juan Marchetti and Hoe Lim. 2006. “Services liberalization in the new generation of preferential trade agreements (PTAs): how much further than the GATS? Staff Working Paper ERSD-2006-07, Geneva: World Trade Organization.

Sida. 2004. “The GATS and developing countries”, Trade Brief, Stockholm: Swedish International Development Cooperation Agency.

Sauvé, Piere. 2003. “Services’, in regionalism and multilateral trading system”, Paris: Organisation for Economic Co-operation and Development, pp. 23-42.

WTO. 2002. The Legal Texts: The results of the Uruguay Round of multilateral trade negotiations, Geneva: World Trade Organization.

WTO. 2013. Trade policy review: countries of the Central African Economic and Monetary Community (CEMAC), report by the WTO Secretariat WT/TPR/S/285/Rev.1, 12 December 2013 (revision including annexes).